Financial statements provide a primary source of evidence as to the financial position of an organisation. Earlier this year, the news media reported:

REQUIRED:

a). Provide a brief summary the key features and relevance of both of the following two theories as they relate to financial reporting:

i)Positive Accounting Theory

ii)Stakeholder Theory

b). With reference to the news media except above, discuss how one of the theories mentioned in part a) of this question could help to explain how accounting information may be used (and/or misused).

Electrical employees protest across the country Months of stalled negotiations and a series of rejected pay offers between electricians and their employers have resulted in a nationwide strike. This came after the employers provided financial statements which they said proved that there was no money available to fund a higher pay increase beyond what the employers had already offered